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Six months after the harvest of the 2021 kharif crop, India’s soybean processing is down by half at 40.50 lakh tonnes as of end-March, over 62.50 lakh tonnes in the same period last year. This is mainly on account of 18 per cent lower arrivals compared to the previous year. Farmers are still anticipating higher prices and are slow in bringing them to market.
According to supply and demand estimates by the Soyabean Processors Association of India (SOPA), the apex trade body, soyabean arrivals stood at 61 lakh tonnes during the October-March period as compared to 74.75 lakh tonnes in the same period last year. Imports during the period were higher at 1.90 lakh tonnes compared to 1.40 lakh tonnes.
SOPA estimates that traders/farmers and crushing plants have a stock of 67.45 lakh tonnes as of end-March.
As a result of lower crushing, the soyameal production is also reduced by 35 per cent to 32.33 lakh tonnes compared with 49.89 lakh tonnes in the same period last year. During the same period, the imports of soyameal are estimated at 4.40 lakh tonnes.
Exports down
The soyameal exports continue to trail last year's levels significantly. The exports stood at 4.72 lakh tonnes, a decline of 71 per cent over the same period last year's 16.31 lakh tonnes. The lack of price parity in the international market is the main reason for the sluggish trend in l exports.
The soyameal’s domestic consumption is also down marginally at 28.50 lakh tonnes against 29.25 lakh tonnes. However, the growth in food segment continued with rising demand. Soyameal consumption by the food segment grew by about 33 per cent to 4.05 lakh tonnes during Oct-March against 3.05 lakh tonnes in the same period last year.
SOPA has estimated soyabean output during the 2021 kharif season at 118.98 lakh tonnes. With carryover stocks of 1.83 lakh tonnes and imports of 3.50 lakh tonnes, the total supplies are estimated at 124.22 lakh tonnes. The trade body counts the availability for crushing at 88 lakh tonnes, retained for sowing at 13 lakh tonnes, direct consumption at 3 lakh tonnes and a carry forward of 19.72 lakh tonnes for the next year.
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